Needham & Company Reiterates Buy on Spansion (CODE) After SK Hynix Patnership
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Price: $38.59 --0%
Rating Summary:
8 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
8 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterated its Buy rating and $16 price target on Spansion (NYSE: CODE) following news the company would partner with SK Hynix to deliver SLC NAND products at the 4x, 3x, 2x nodes (1Gb-4Gb) to the embedded market.
"We believe this announcement should dispel investor concerns that the Elpida bankruptcy would disrupt CODE's SLC NAND opportunity," the analyst said. "CODE is down ~5% over the past month, compared to up 3% for the SOX, we think mainly on this concern. With the Hynix partnership in place, CODE looks on track to see $20-30MM of revs in 2H12. Long term, we believe we could see $200MM of revenues, assuming 20-30% share of $1BN NAND sub-market. With a material gross margin recovery in the works and the shares trading at 6x P/E 2013E EPS, we would be buyers at these levels."
For an analyst ratings summary and ratings history on Spansion click here. For more ratings news on Spansion click here.
Shares of Spansion closed at $12.40 yesterday.
"We believe this announcement should dispel investor concerns that the Elpida bankruptcy would disrupt CODE's SLC NAND opportunity," the analyst said. "CODE is down ~5% over the past month, compared to up 3% for the SOX, we think mainly on this concern. With the Hynix partnership in place, CODE looks on track to see $20-30MM of revs in 2H12. Long term, we believe we could see $200MM of revenues, assuming 20-30% share of $1BN NAND sub-market. With a material gross margin recovery in the works and the shares trading at 6x P/E 2013E EPS, we would be buyers at these levels."
For an analyst ratings summary and ratings history on Spansion click here. For more ratings news on Spansion click here.
Shares of Spansion closed at $12.40 yesterday.
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